Here is some basic information that you need to know about these SBA programs. There are certain limitations on how much is going to be “free” or forgiven if you are utilizing more than one coronavirus program. Make sure to check your facts and visit with your lender and accounting professional to understand how this impacts you.
Forgivable if used for payroll (minimum of 75% of the funds received) and the remaining for certain operating expenses (amount of any EIDL advance is not forgivable)
Up to $10 million
1% interest rate
Ability to have it forgiven but you have to meet the timelines and guidelines they provide
First payment is deferred 6 months for the amount that is not forgiven.
To meet financial obligations and operating expenses that could have been met had the disaster not occurred (amount of any EIDL advance is forgiven)
Up to $2 million
3.75% for businesses
2.75% for non-profits
Maturity: 30 years
First Payment due in 1 year
EIDL Advance may be forgivable but actual loan is not. The advance being forgiven is impacted if you are participating in the PPP program.